NECESSITY, FUNCTION, AND CONFORMITY: KRS
131.130(1) authorizes the department to promulgate administrative regulations
to administer and enforce Kentucky's tax laws. KRS 141.400(9) authorizes the
department to promulgate administrative regulations to require the filing of
forms necessary to comply with KRS 154.28-010 to 154.28-090, the Kentucky
Industrial Development Act, and the allowable income tax credit that a company
may retain under those statutes. This administrative regulation establishes the
filing requirements for the assessment authorized by KRS 154.28-100.

Section 1. Definitions. (1) "Annual report"
means Form Number 42A812, which is incorporated by reference in 103 KAR 1:050.

(2) "Approved company" is
defined in KRS 154.28-010 (5).

(3) "Assessment" is defined in
KRS 154.28-010(7).

(4) "Authority" is defined in
KRS 154.28-010(8).

(5) "Department" means the
Department of Revenue.

(6) "Economic development project"
or "project" is defined by KRS 154.28-010(11).

(7) "Gross wages" mean any
payment an employer gives an employee for services performed as reported in box
1 of Internal Revenue Service Form W-2, Wage and Tax Statement.

(8) "Inducement" is defined in
KRS 154.28-010(15).

(9) "KIDA" means the Kentucky
Industrial Development Act, which is codified as KRS 154.28-010 to 154.28-100.

Section 2. Annual Report for Assessment. (1)
An approved company that has elected to take assessments as its KIDA project
inducement shall file an annual report with the department.

(2) An annual report for the KIDA
assessment shall be faxed or mailed to the department on or before March 15 to
report wage assessments claimed for the preceding calendar year.

(3) Information required on the annual
report shall include:

(a) Business name;

(b) KIDA number assigned by the Cabinet
for Economic Development;

(c) Kentucky withholding account number;

(d) Activation date of project;

(e) Total annual gross wages paid to
eligible KIDA employees;

(f) Total annual Kentucky KIDA wage
assessments claimed; and

(g) Total annual Kentucky tax withheld
and reported for all employees.

(4) Information required to be submitted
as an attachment to the annual report in a spreadsheet format shall include: